Slide 1: F.N.B. Corporation Earnings Presentation First Quarter 2023
F.N.B. Corporation Earnings Presentation First Quarter 2023 April 20, 2023
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This document may contain statements regarding F.N.B. Corporation’s outlook for earnings, revenues, expenses, tax rates, capital and liquidity levels and ratios, asset quality levels, financial position and other matters regarding or affecti
Slide 3: Use of Non-GAAP Financial Measures and Key Performance Indicators
Use of Non-GAAP Financial Measures and Key Performance Indicators Use of Non-GAAP Financial Measures and Key Performance Indicators To supplement our Consolidated Financial Statements presented in accordance with GAAP, we use certain non-GAAP financial measures, such as operating net income availabl
Slide 4: Financial Highlights
Financial Highlights First Quarter 2023 Highlights (compared to the year-ago quarter, unless stated otherwise) ❖ Record revenue totaled $416 million, an increase of 33.2%. o Net interest income increased $102.6 million, or 43.8%. o Non-interest income increased $1.1 million, or 1.4%. ❖ Operating ear
Slide 5: Strong Financial Performance
Strong Financial Performance Strong Profitability Metrics 1Q23 YoY Average Loan Growth(4) Quarter Ended 3/31/2023 19.7% 50.6% 16% 23% ROATCE(1) Efficiency Ratio(1)(3) Total Loans Consumer Loans 1.5% 3.56% Net Interest 1Q23 YoY Average Deposit Growth(4) ROATA(1) Margin(1)(3) 4% 1% Significant Capital
Slide 6: First Quarter Financial Highlights
First Quarter Financial Highlights 1Q23 4Q22 1Q22 Net income available to common stockholders $144.5 $137.5 $51.0 (millions) Reported Earnings per diluted common share $0.40 $0.38 $0.15 Results Book value per common share $15.76 $15.39 $15.19 Operating net income available to common (1) $146.1 $157.
Slide 7: Strong Capital Position
Strong Capital Position FNB maintains capital ratios that are superior to peer banks while demonstrating a more conservative credit culture. TCE Ratio(1) CET1 Ratio(2) 7.5% 10.0% 10.2% 9.1% 8.3% 8.4% 7.0% 7.9% 6.9% 6.4% FNB as of 3/31/23 Median of Peer Banks as of 12/31/22 FNB as of 3/31/23 Median o
Slide 8: Asset Quality
Asset Quality $ in millions, unless otherwise stated 1Q23 4Q22 1Q22 1Q23 Highlights Delinquency 0.60% 0.71% 0.66% o Asset quality remained at favorable levels with the portfolio well positioned entering 2023. NPLs+OREO/Total loans and leases + 0.38% 0.39% 0.40% OREO o The provision for credit losses
Slide 9: Loan Portfolio Mix
Loan Portfolio Mix Highly diversified, commercial-focused loan portfolio Loan Portfolio (As of March 31, 2023) C&I Owner CRE 23% 11% Equipment Finance Loans and Leases 3% Other 1% Indirect Non-Owner CRE 5% 26% HELOC 4% Home Equity 9% Residential Mortgage 18% Total Loan Portfolio: $30.7 billion Total
Slide 10: Non-Owner Occupied CRE Portfolio
Non-Owner Occupied CRE Portfolio Non-Owner Occupied CRE Portfolio CRE - Office Loan Statistics Retail Office as of March 31, 2023 20.4% 22.0% ❖ Long history of working with well-established sponsors with a focus on strong global cash flows ❖ Average LTV is in the low 60’s $8.0 Billion of ❖ Delinquen
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights Average, $ in millions 1Q23 (1) 4Q22 1Q22 QoQ ∆ (3) YoY ∆ 1Q23 Highlights o Total securities were flat Securities 7,270 7,273 6,956 (0.0%) 4.5% quarter-over-quarter with AFS comprising 46% of the portfolio. o Total average loan growth Total Loans 30,410 29,361 26,239 3.6% 15
Slide 12: Deposit Composition
Deposit Composition FNB maintains a favorable deposit mix Total Deposits(1) (2009 – 1Q23) 2009 1Q23 Δ NIB Deposits 16% 33% 17% Time Deposits 35% 14% (21%) 34% 33% 34% 31% 26% 26% 26% 26% 56% 53% 52% 55% 56% 57% 24% 54% 23% 22% 19% 18% 58% 16% 16% 54% 56% 53% 53% 50% 52% 52% 21% 22% 19% 14% 35% 28% 2
Slide 13: Stable and Granular Deposit Base
Stable and Granular Deposit Base Diversified funding channels provide levers for growth and reflect long-term relationships Deposit Composition Key Statistics as of March 31, 2023 as of March 31, 2023 Private Banking Consumer 3% 41% ❖ $34 billion in total deposits with a focus on customer primacy. C
Slide 14: Revenue Highlights
Revenue Highlights $ in thousands, unless otherwise stated 1Q23 4Q22 1Q22 QoQ Δ (2) YoY Δ 1Q23 Highlights Total interest income $443,503 $407,882 $253,580 8.7% 74.9% o Net interest income increased linked-quarter primarily due to growth Total interest expense 106,849 72,993 19,504 46.4% 447.8% in av
Slide 15: Interest Rate Risk Profile
Interest Rate Risk Profile Cumulative Total Deposit Betas Loan Repricing Frequency as of March 31, 2023 3/31/22 6/30/22 9/30/22 12/31/22 3/31/23 16,000,000 Fed Funds Rate 0.50% 1.75% 3.25% 4.50% 5.00% 48.6% Cumulative Deposit Beta 0.2% 9.7% 12.5% 16.6% 21.8% Other 14,000,000 39.6% 12,000,000 Total L
Slide 16: Non-Interest Income
Non-Interest Income $ in thousands 1Q23 4Q22 1Q22 QoQ Δ(1) YoY Δ 1Q23 Highlights o Service charges decreased Service charges $32,640 $35,536 $31,515 (8.1%) 3.6% linked-quarter due to seasonality and the expected decline in overdraft and non-sufficient fund Trust income 10,611 9,371 10,349 13.2% 2.5%
Slide 17: Non-Interest Expense
Non-Interest Expense $ in thousands 1Q23 4Q22 1Q22 QoQ Δ (2) YoY Δ 1Q23 Highlights Salaries and employee benefits (1) $120,247 $103,558 $112,130 16.1% 7.2% o Salaries and employee benefits increased linked- quarter from normal Occupancy and equipment(1) 39,442 36,794 34,257 7.2% 15.1% seasonal compe
Slide 18: 2023 Financial Objectives
2023 Financial Objectives 2Q23 Guidance FY 2023 Guidance Commentary Spot Loans Mid single digit growth Balance Sheet(1) Spot Deposits Flattish Net Interest Income $325-$335 million $1.315-$1.365 billion Assumes one additional 25 bp hike in May (non-FTE) Expect continued benefits from diversified Non
Slide 19: 2023 Peer Group Listing
2023 Peer Group Listing Ticker Institution Ticker Institution ASB Associated Banc-Corp PNFP Pinnacle Financial Partners BKU BankUnited, Inc. RF Regions Financial Corp. BOKF BOK Financial Corp. SNV Synovus Financial Corp. CBSH Commerce Bancshares, Inc. SSB SouthState Corp. CFR Cullen/Frost Bankers, I
Slide 20: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 20
Slide 21: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 21
Slide 22: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 22
Slide 23: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 23
Slide 24: Non-GAAP to GAAP Reconciliation
Non-GAAP to GAAP Reconciliation 24